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2025-07-29 03:43:38
[The U.S. Treasury Department significantly raised its quarterly borrowing forecast to replenish cash reserves] Due to the impact of the debt ceiling, the U.S. Treasury Department significantly raised its federal borrowing estimate for this quarter to $1 trillion. The U.S. Treasury Department issued a statement on Monday saying that it expects net borrowing to be $1.01 trillion from July to September, higher than the $554 billion forecast in April. In the first half of the year, the government had to cut bond issuance to avoid hitting the debt ceiling. Since Congress raised the debt ceiling by $5 trillion at the beginning of this month, the Treasury Department is accelerating bond issuance to rebuild cash reserves. As usual, the Treasury Department's April estimate did not take into account the debt ceiling factor. At that time, it was assumed that the cash balance at the end of June would be $850 billion, but in reality it was only $457 billion. The Treasury Department said that without considering the lower-than-expected cash balance at the beginning of the quarter, this quarter's borrowing estimate is $60 billion higher than the amount announced in April.
